On December 1, 2021, ABC Company, borrows $55,000 cash to expand operations. The loan is made by First Bank under a short-term line of credit arrangement. The company signs a six-month, 12% promissory note. Interest is payable at maturity. ABC's year-end is December 31. Required: ABC Company should record which of the following adjusting entries at December 31, 2021? Dr. Interest expense and Cr. Interest payable. $550 Dr. Interest expense and Cr. Interest payable, $1,100 O Dr. Interest expense and Cr. Cash, $550 Dr. Interest expense and Cr. Cash, $1,100 What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2022? $58,300 $61,600 $60,500 $57,750 In connection with this note, ABC Company should report interest expense in 2022 for the amount of $2,750 $6,600 $5,500